Tow straps can be used to tow a wide variety of vehicles. Conventionally, an initially slack or loose tow strap is attached between a towing vehicle and a towed vehicle. As the towing vehicle moves, the slack is removed and a tension force is transmitted therebetween from the towing vehicle to the towed vehicle. However, several problems can occur. In one example, during the towing process, slack can be generated when the towing vehicle slows down, such as to stop or make a turn. The slack can cause the tow strap to be unable to maintain tension, slide under the wheel of the towed vehicle, and/or be caught around the various moving parts of the vehicle. Also, the slack tow strap can drag on the ground and can become dirty or caught on a ground hazard. Additionally, the slack can cause the tow strap to move or dislodge from one of the vehicles and/or can cause a sudden jerking motion when the towing car accelerates back up to speed. In another example problem, the loose tow strap can be difficult to wind and store, especially when a relatively longer length tow strap is used. Accordingly, it would be beneficial to provide a retractable tow strap apparatus that can overcome the aforementioned problems.